Advanced Search
MyIDEAS: Login to save this article or follow this journal

Modelling water markets under uncertain water supply

Contents:

Author Info

  • Javier Calatrava
  • Alberto Garrido
Registered author(s):

    Abstract

    This paper looks at the risk dimension of water markets under uncertain water supply. We model market participants' decisions under uncertainty and evaluate gains from trade under two different market arrangements. These differ in the confidence that irrigators can place in the water market-clearing processes, and their chances of pursuing tactical responses to deal with supply uncertainty. A two-stage stochastic model, that simulates both market arrangements, is applied to an irrigation district of Southern Spain. We show that centralised water markets, perhaps brokered by the water authority, lead to more efficient allocation and resource use than decentralised markets. The paper highlights the importance of providing a reliable market setting. Copyright 2005, Oxford University Press.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

    Volume (Year): 32 (2005)
    Issue (Month): 2 (June)
    Pages: 119-142

    as in new window
    Handle: RePEc:oup:erevae:v:32:y:2005:i:2:p:119-142

    Contact details of provider:
    Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
    Fax: 01865 267 985
    Email:
    Web page: http://www.erae.oupjournals.org/
    More information through EDIRC

    Order Information:
    Web: http://www.oup.co.uk/journals

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Alberto Garrido, 2007. "Water markets design and evidence from experimental economics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(3), pages 311-330, November.
    2. Calatrava, Javier & Martinez-Granados, David, 2012. "El valor del uso del agua en el regadío de la cuenca del Segura y en las zonas regables del trasvase Tajo-Segura," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 12(1).
    3. Foellmi, Reto & Meister, Urs, 2011. "Enhancing the Efficiency of Water Supply – Product Market Competition versus Trade," CEPR Discussion Papers 8423, C.E.P.R. Discussion Papers.
    4. Goetz, Renan U. & Martinez, Yolanda & Rodrigo, Jofre, 2008. "Water allocation by social choice rules: The case of sequential rules," Ecological Economics, Elsevier, vol. 65(2), pages 304-314, April.
    5. Dono, Gabriele & Mazzapicchio, Graziano, 2010. "Uncertain water supply in an irrigated Mediterranean area: An analysis of the possible economic impact of climate change on the farm sector," Agricultural Systems, Elsevier, vol. 103(6), pages 361-370, July.
    6. Dono, Gabriele & Cortignani, Raffaele & Doro, Luca & Giraldo, Luca & Ledda, Luigi & Pasqui, Massimiliano & Roggero, Pier Paolo, 2013. "Adapting to uncertainty associated with short-term climate variability changes in irrigated Mediterranean farming systems," Agricultural Systems, Elsevier, vol. 117(C), pages 1-12.
    7. Reto Foellmi & Urs Meister, 2004. "Enhancing Efficiency of Water Supply - Product Market Compoetition versus Trade," Working Papers 0025, University of Zurich, Institute for Strategy and Business Economics (ISU).
    8. Blanco-Gutiérrez, Irene & Varela-Ortega, Consuelo & Flichman, Guillermo, 2011. "Cost-effectiveness of groundwater conservation measures: A multi-level analysis with policy implications," Agricultural Water Management, Elsevier, vol. 98(4), pages 639-652, February.
    9. Gil, Marina & Garrido, Alberto & Gómez-Ramos, Almudena, 2011. "Economic analysis of drought risk: An application for irrigated agriculture in Spain," Agricultural Water Management, Elsevier, vol. 98(5), pages 823-833, March.
    10. Lavee, Doron, 2010. "The effect of water supply uncertainty on farmers' choice of crop portfolio," Agricultural Water Management, Elsevier, vol. 97(11), pages 1847-1854, November.
    11. Dono, Gabriele & Cortignani, Raffaele & Giraldo, Luca & Doro, Luca & Ledda, Luigi & Pasqui, Massimiliano & Roggero, PierPaolo, 2012. "Evaluating productive and economic impacts of climate change variability on the farm sector of an irrigated Mediterranean area," 126th Seminar, June 27-29, 2012, Capri, Italy 126099, European Association of Agricultural Economists.
    12. Griffith, Marnie & Codner, Gary & Weinmann, Erwin & Schreider, Sergei, 2009. "Modelling hydroclimatic uncertainty and short-run irrigator decision making: the Goulburn system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), December.
    13. Pujol, Joan & Raggi, Meri & Viaggi, Davide, 2006. "The potential impact of markets for irrigation water in Italy and Spain: a comparison of two study areas," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), September.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:oup:erevae:v:32:y:2005:i:2:p:119-142. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.